Ethereum is making another attempt to break above the $4,000 level as it moves closer to all-time highs. Despite its strong fundamentals, there are still doubts in the market regarding Ethereum's performance in this cycle, with some expecting it to underperform amid strong competition from other blockchain ecosystems. However, Ethereum's recent price action indicates that it is building momentum, keeping investors on the lookout for a breakout.
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Lead analyst Carl Runefelt recently shared a technical analysis, noting that Ethereum has encountered strong resistance near the $4,000 mark and is now consolidating in the direction of -within a symmetrical triangle on the hour chart. This pattern often precedes a decisive move, leaving traders wondering whether ETH will break out to new highs or face a temporary pullback.
Ethereum's performance at this key level they are likely to shape market sentiment in the coming weeks. A break above $4,000 could pave the way for a rally towards an all-time high in investor confidence. On the other hand, if this resistance is not cleared it could confirm bearish concerns and lead to a retracement. As ETH is still at a critical stage, all eyes are on its ability to navigate this critical zone and deliver the next big move.
Ethereum is getting ready to move
Ethereum has been grappling with major resistance above the $4,100 level, leaving the market in doubt as traders anticipate its next move. With the price consolidating and showing signs of compression, Ethereum seems poised to make a decisive move in the coming days. The pressing question remains: will it break higher, or is a pullback imminent?
Runway share his thoughts on Xindicates that Ethereum is currently trading within a symmetrical triangle on the hourly chart – a pattern known to indicate a breakout or breakdown. According to Runefelt, the immediate future of Ethereum depends on two main phases.
A breakout above $4,100 confirmed a bullish path, possibly moving ETH to new highs. Conversely, a break below $3,675 would indicate bearish sentiment, opening the door for a deeper correction.
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Runefelt emphasizes the importance of these levels, noting that the symmetrical triangle suggests rising pressure that could lead to significant volatility. Since Ethereum is holding its position close to critical resistance, the next few days are shaping up to be very important to determine its market direction.
Technical Levels to Watch
Ethereum (ETH) is currently trading at $3,840 after failing to break above the crucial $4,000 resistance level. While the price remains strong and within the range of this key level, it needs to clear $4,000 to confirm its continuation. Without a definite breakout, ETH risks losing momentum, leaving traders and investors wary of the next move.
The $4,000 level has been a major psychological and technical barrier for Ethereum, with several attempts to break it meeting selling pressure. A successful break of this resistance would likely be a way for ETH to target higher levels, which could push towards the annual high of $4,100 and beyond.
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However, if Ethereum fails to overcome this obstacle, the market could move back to lower demand zones. The $3,500 area is emerging as a critical support level that traders are watching closely. A drop to this level could provide a solid base for a bounce, but the loss of this support could shift towards bearish sentiment.
Featured image from Dall-E, chart from TradingView
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